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The Vulcan Energy Resources Ltd (ASX: VUL) share price could be great value according to one leading broker.

This is despite the lithium developer’s shares rising 250% since the start of 2021.

Who is bullish on the Vulcan share price?

The team at Canaccord Genuity is very bullish on the Vulcan share price. In fact, it believes it could more than double in value in 2022.

According to a note from last week, the broker has retained its speculative buy rating and lifted its price target on the company’s shares to $22.00. Based on the current Vulcan share price of $9.86, this implies potential upside of 120% over the next 12 months.

This price target is based on its “risked (60%) NAV, using US$15,000/t LiOH, 1.58 EURAUD, and 8% discount rate for the lithium operation.”

What did the broker say?

Canaccord Genuity notes that Vulcan has agreed to acquire the Insheim geothermal plant and secured offtake rights for spent brine from the Landau geothermal plant.

It sees a lot of positives in this and notes that it means Vulcan will soon be generating revenue. It also gives it an opportunity to demonstrate its direct lithium extraction (DLE) technology.

The broker said: “In mid-December, Vulcan agreed to acquire the Insheim geothermal plant and secured offtake rights for spent brine from the Landau geothermal plant. The acquisition, which was effective 1 Jan 2022, transitions Vulcan into an operator with revenues.”

“However, more importantly, it is a platform for Vulcan to demonstrate its DLE technology in a commercial operation and how geothermal reservoirs operate (Li grades, flow rates, subsurface conditions). We previously unwound some of our risking to account for the potential acquisition, but we have now modeled the operation assuming €330m to upgrade the assets, construct the DLE, and contribution to the first stage of the Central Lithium Plant (CLP),” it added.

The post Why Vulcan (ASX:VUL) could be a lithium share with 120% upside appeared first on The Motley Fool Australia.

More reading

• Here’s why the Vulcan Energy (ASX:VUL) share price is climbing today
• How the Vulcan (ASX:VUL) share price almost quadrupled in 2021
• The 5 best ASX lithium stocks of 2021
• Here’s why the Vulcan (ASX:VUL) share price is charging 6% higher today
• Broker tips Vulcan (ASX:VUL) share price to double in 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The Kogan share price hit a new 12-month low of $7.16 on Wednesday
• The dip might have been exacerbated by news of Wesfarmers’ online marketplace, Catch
• At the time of writing, Kogan’s shares are trading 10.1% lower then they were at the end of last week and 36.9% lower than they were 6 months ago

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The Kogan.com Ltd (ASX: KGN) share price has continued its downwards spiral, hitting a new 52-week low of $7.16 on Wednesday – representing a 3.5% slump.

That’s the lowest it’s been since early December, when it hit $7.20.

At the time of writing, the Kogan share price has rallied to trade at $7.38, 0.54% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.87%.  

Let’s take a look at what might be weighing on the online retailer’s stock lately.

What’s dragging the Kogan share price lower this week?

The Kogan share price has had a rough trot lately and it’s potentially been made worse by news from a competitor.

Earlier this week, Wesfarmers Ltd (ASX: WES) released an update that noted its own online marketplace Catch had recorded less than ideal growth.

The retail giant announced, for the first half of financial year 2021, Catch’s gross transaction value is expected to have grown by just 1%.

The online marketplace is also expected to record an earnings before tax loss of between $45 million and $43 million. The loss was said to be due to continued investment to support long-term growth and higher levels of inventory clearance.

While Catch bears no direct relation to Kogan, investors likely assumed the businesses would trade alongside each other.

Particularly because, as my Foolish colleague James reported, Kogan and Catch both reported similar earnings for the previous half-year.

Potentially in response to Wesfarmers’ update, the Kogan share price slipped 3% on Monday and another 7% yesterday.

Right now, Kogan’s stock has tumbled to trade at 64% less than it was this time 12 months ago. It has also slumped 10% since Friday’s close.

The post Kogan (ASX:KGN) share price hits new 52-week low. Down 37% in 6 months appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• Morgans upgrades Wesfarmers (ASX:WES) shares to buy rating
• Why AVZ, Kogan, Panoramic, and Redbubble shares are sinking
• ASX 200 (ASX:XJO) midday update: Rio Tinto’s Q4 update, JB Hi-Fi rockets, Kogan sinks
• Own Wesfarmers (ASX:WES) shares? Jefferies just lowered FY22 earnings forecasts

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Pointerra released its December 2021 quarter (Q2 FY22) activities and cash flow report today.
• In the report it outlined record quarterly cash receipts from customers.
• All other areas saw growth and new customers added as well.
• Pointerra share price is up 12% on the day.

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Shares in 3D geospatial data company Pointerra Ltd (ASX: 3DP) are rocketing today and now trade 12% higher at 40 cents apiece.

Investors are piling into Pointerra during Wednesday’s session following the release of its December 2021 quarter (Q2 FY22) activities and cash flow report. Let’s take a closer look.

Pointerra share price jumps solid cash flow results

The company outlined several investment highlights it had achieved last quarter, including:

• Record quarterly cash receipts from customers $2.85 million
• Cash flow positive quarter from operations $800,000
• Energy Utilities Sector – material contracts awarded (between $4.33 and $6.6 million) and existing customers grow Actual Cash Value (ACV) spend
• AEC Sector – new customers added and existing customers grow ACV spend
• Survey & Mapping Sector – new customers added and existing customers grow ACV spend
• Transport Sector – new customers added and existing customers grow ACV spend
• Mining, Oil & Gas Sector – new customers added and existing customers grow ACV spend

What happened last quarter for Pointerra?

The quarter was highlighted by record cash receipts from customers to $2.85 million and cash flow from operations.

It also outlined several contract wins totalling between $4.33 million and $6.60 million, in the “strategically important US energy utilities sector” that was announced last year.

Coupled with these material contract awards, growth in spend by existing customers during the quarter generated further uplift in Pointerra’s USD Actual Cash Value (ACV) run rate (ACV is akin to annual recurring revenue only for subscription services).

The company says it “looks forward to updating the market with a revised US$ ACV run rate, with the next update being provided by 31 January 2022 at the latest”.

Pointerra says that a number of new customers were added during the quarter in its Survey and Mapping segment as well. Australian growth for instance is increasingly being driven by “state and local government agency mandates that survey & mapping firms deliver data via Pointerra3D Core”.

Meanwhile, in the US, inside sales initiatives continued during the quarter which resulted in a “very large number of lower dollar ACV prospects”.

Aside from that, the company realised a period of growth in all of its core operating segments, earmarked by the continued adoption of its “solution” by Australian road and rail operators.

During the quarter, payments for Research and Development (R&D) of $355,000 were made as salary allocations to team members who are “100% focused on R&D activities”.

Pointerra notes that cash outflows for the quarter were ‘in line with expectations’ and that the balance sheet showed around $5 million in cash as of 31 December 2021.

What’s next for Pointerra?

The company remains prioritised on R&D efforts to build out its strategic areas. Some of these include a platform to underpin the delivery of point cloud analytics to Pointerra3D Core customers and developing a catalogue of analytics algorithms for Pointerra3D Analytics customers.

Aside from that, Pointerra is focused on broadening the platform to support complementary data types and exploring methods to apply neural network machine learning.

The company didn’t provide any specific revenue or profit guidance. The Pointerra share price is up 12% on the day and has rallied more than 8% in the past week of trading.

The post Pointerra (ASX:3DP) share price rockets 12% on ‘record quarterly cash receipts’ appeared first on The Motley Fool Australia.

More reading

• Electro Optic Systems (ASX:EOS) share price edges lower amid senior leadership appointment
• Here are 4 ASX shares insiders are putting their money behind
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Aston Minerals (ASX:ASO) soars 15% on new nickel-copper discovery
• How are ASX bank shares performing today?

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key Points

• The Electro Optic Systems share price is 2.27% lower to $2.15
• The company creates a new role of deputy CEO
• It will be filled by Dr Rowan Gilmore

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The Electro Optic Systems Hldgs Ltd (ASX: EOS) share price is heading south today despite the company announcing a key appointment.

During mid-afternoon trade, the communications, defence, and space company’s shares are down 2.27% to $2.15 apiece.

Electro Optic Systems creates new position

In today’s statement, Electro Optic Systems advised that it has created the brand new position of deputy chief executive officer.

Taking up the role will be CEO of EM Solutions (a business unit within Electro Optic Systems), Dr Rowan Gilmore.

Effective immediately, Dr Gilmore will be tasked with budget execution and compliance, productivity improvements, and mentoring the senior leadership team.

Electro Optic Systems noted that EM Solutions is an important element of its SpaceLink space communications program.

Dr Gilmore’s 10-year tenure at the helm of EM Solutions masterminded a small company into a world-class technology developer. As such, microwave and on-the-move radio and satellite products are currently being used by six navies across the globe.

Before his inclusion into EM Solutions, Dr Gilmore worked for SITA, a company providing software and telecommunications to more than 600 airlines in the world.

Electro Optic Systems stated that Dr Gilmore leaves his business unit in fantastic shape, with 2021 revenues exceeding $25 million. There is also an order book backlog of around 18 months.

Replacing his position, EM Solutions’ Director of Programs John Logan and previous Director of Operations Georgios Makris will fill the void.

Electro Optic Systems share price snapshot

It has been a difficult 12 months for shareholders, with the Electro Optic Systems share price tumbling around 62%. The company’s shares reached a 52-week low of $2.08 today, before rebounding slightly higher.

Electro Optic Systems commands a market capitalisation of roughly $324 million and has approximately 151 million shares on issue.

The post Electro Optic Systems (ASX:EOS) share price edges lower amid senior leadership appointment appeared first on The Motley Fool Australia.

More reading

• Here are 4 ASX shares insiders are putting their money behind
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Aston Minerals (ASX:ASO) soars 15% on new nickel-copper discovery
• How are ASX bank shares performing today?
• Redbubble (ASX:RBL) share price sinks again after brokers respond to update

Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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When investing in ASX shares it can sometimes be helpful to make a note of which companies have experienced recent insider buying.

The reason is, there aren’t too many people who would likely have a better understanding of the company’s value than those on the board. Therefore, it is considered a vote of confidence when an insider buys shares in the company they are a part of.

Let’s take a look at a handful of ASX shares with recent insider buying.

4 ASX shares execs have been loading up on

Codan Limited (ASX: CDA)

Shares in the communications equipment and metal detector manufacturer have struggled to put a foot in a positive direction since June 2021. Since then, the Codan share price has fallen 54% to its current level of $8.78.

It appears investors are treading cautiously and giving the company some time to digest its two acquisitions carried out in the first half of last year. The combined outlay for the acquisitions of Zetron and Domo Tactical Communications totalled $173 million.

However, this hasn’t stopped non-executive director Graeme Rodger Barclay from loading up last month. According to the notice, Barclay acquired 5,162 shares at a price of $9.71. This equates to an investment worth $50,102 at the time.

Life360 Inc (ASX: 360)

The next ASX share making the list is the family safety service company, Life360. Shareholders have been rewarded for holding onto this share over the last year, with its price rising 137%. However, since mid-November, the Life360 share price has fallen 37%.

In November, Life360 announced its plans to acquire the “leading platform for finding things” Tile for a smooth $280 million. Though, the market’s sentiment towards the company has waned — possibly waiting for a positive indicator before making further moves.

For board member James Synge, there was no need for further indication on 7 December 2021. Making the biggest investment on our list, the SEEK Limited (ASX: SEK) founder nabbed himself 50,000 shares worth $518,800.

Collins Food Ltd (ASX: CKF)

One exec on the board of Collins Foods must have thought the share price was finger-licking good in December. Despite the Australian KFC and Taco Bell franchisee being not too far off all-time highs, Mark Hawthorne of Collins Foods had a nibble.

Investors have been hungry for more shares in this restaurant operator recently. This follows the release of its half-year results, showing a 31.6% increase in underlying net profits of $28.9 million.

According to the notice, Hawthorne helped himself to 3,000 shares in Collins Foods at a total value of $39,899.

Harvey Norman Holdings Limited (ASX: HVN)

Finally, the last ASX share on our list with recent insider buying is retailing giant Harvey Norman. Once again, this company — like others in this article — has been placed in the undesired basket by investors recently. Since August, shares in Harvey Norman have slipped 11%.

The weakness in this Aussie retailer began around the time it released its FY21 results to the market. Despite growing comparable sales by ~14% and delivering a bumper profit, investors showed discontent towards this ASX share.

Co-founder Gerry Harvey has taken the opportunity to load up on some more shares. On 2 December, Harvey acquired 47,810 shares for a total value of $236,658.

The post Here are 4 ASX shares insiders are putting their money behind appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, Harvey Norman, HUB24, and Lake Resources shares are pushing higher
• Top brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: BHP’s update, Megaport sinks, HUB24 impresses
• Here are the tech shares leading the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Collins Foods Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is suffering through another poor day of trading so far this Wednesday. At the time of writing, the ASX 200 is down by a nasty 1.04% at 7,332 points.

But let’s not let that get us down. So instead, let’s dive a little deeper into the ASX 200 shares presently topping the ASX’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Sydney Airport (ASX: SYD)

ASX 200 infrastructure company Sydney airport is our first share to take a look at today. This Wednesday has seen a hefty 17.33 million SYD shares fly to a new home. That’s despite an absence of news or announcements from the Airport today. The Sydney Airport share price isn’t doing too much either. It’s currently sitting at $8.65 a share, flat for the day so far.

So it’s possible that this volume is being caused by the planned acquisition of Sydney Airport. The company is recently in the process of being acquired by a consortium of institutional infrastructure investors at a share price of $8.75 a share. Perhaps there is some elevated trading going on before shareholders get to vote on the deal on 3 February.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara Minerals is next up this Wednesday. Pilbara has watched as a whopping 18.05 million of its shares have changed hands so far today.

This is almost certainly the result of the nasty share price fall that Pilbara has endured today. The company is currently down by 3.9% at $3.71 a share after going as low as $3.67 (down more than 4%) earlier this morning. Even so, that still leaves Pilbara up a healthy 5.4% in 2022 so far.

Scentre Group (ASX: SCG)

Last but certainly not least in terms of trading volume, we have ASX 200 Real Estate Investment Trust (REIT) Scentre Group. We have seen a sizeable 22.41 million Scentre shares bought and sold on the markets so far today. Again, there’s not much in the way of news or announcements out from Scentre today.

So we can probably put this volume down to the gyrations of the Scentre unit price this Wednesday. Scentre is currently trading at $3.02 a unit, but has gone as high as $3.05 and as low as $3.01 over the trading day thus far, playing jump rope with the breakeven line for most of the day. It’s this volatility that could be behind this elevated volume.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

More reading

• The Novonix (ASX:NVX) share price just tanked 10%. What’s going on?
• Are the worst-performing ASX 200 shares turnaround opportunities?
• Could BrainChip (ASX:BRN) crack into the ASX 200? Here’s what it takes
• ASX 200 (ASX:XJO) midday update: BHP’s update, Megaport sinks, HUB24 impresses
• Why the Pilbara Minerals (ASX:PLS) share price surged 35% in a month

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Investors are piling into Aston today in response to a positive update at its Boomerang Target
• According to the company, the grades of mineralisation are “comparable to that of BHP’s Mt Keith Mining Operation
• Drill permits for the entire strike length of the Boomerang target have been submitted and are expected to be approved shortly
• The Aston Minerals share price is up 215% in the past year.

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The Aston Minerals Ltd (ASX: ASO) share price is charging higher in afternoon trade on Wednesday. At the time of writing, shares in the exploration company are surging 15% at 12 cents apiece.

Investors are piling into Aston today in response to a positive update at its Boomerang Target at the Edleston Project in Canada. Let’s take a look.

What did Aston Minerals announce?

Aston advised it has intersected 163.5m at 0.52% Ni and 0.016% Co from 186.5m within its Boomerang Nickel-Copper (Ni-Co) Target with the hole “ending in mineralisation”.

According to the company, the grades of mineralisation are “comparable to that of BHP Group Ltd (ASX: BHP)’s Mt Keith Mining Operation”.

The target is located at the Edleston Project in Canada. Aston says the project is situated within a Tier 1 mining jurisdiction with “access to green, low-cost hydroelectric power within the Project area”.

Aston also confirmed that a total of 13 drill holes for 5,959m of drilling have been completed across three sections of the Boomerang Target to date and that all of the three sections have nickel sulphide present.

A resource drilling definition program is underway across the “Bardwell portion” of the Boomerang Target, aiming to “systematically expand along approximately 1km of strike” and to the depth of mineralisation.

Meanwhile, drill permits for the entire strike length of the Boomerang target have been submitted and are expected to be approved shortly, per the release.

The company’s aim from here is to define a substantial resource base plus conduct metallurgical and engineering studies this year to “quantify the economic potential of the project”.

Management commentary

Speaking on the announcement, Aston executive chairman, Tolga Kumova said:

Aston is uniquely positioned to capitalise on the burgeoning demand for nickel which has recently reached the highest price since 2011, while nickel inventories are at historically low levels. Currently, the stainless steel industry accounts for approximately two thirds of the utilisation, while demand from electric vehicle batteries are expected to double their current market share to approximately 20% by 2025.

Meanwhile, managing director Dale Ginn added:

The substantial intersection at Bardwell Prospect has exceeded our expectations in relation to both the grade and extent of mineralisation. To have such broad zones of mineralisation at comparable grades to that of Mt Keith so early on in our nickel exploration program provides us with a huge degree of confidence in the potential of the system.

The Aston Minerals share price is up 215% in the past year and has climbed more than 14% already this year to date.

The post Aston Minerals (ASX:ASO) soars 15% on new nickel-copper discovery appeared first on The Motley Fool Australia.

More reading

• How are ASX bank shares performing today?
• Redbubble (ASX:RBL) share price sinks again after brokers respond to update
• Cannindah Resources (ASX:CAE) share price rockets 21% after ASX response
• The Novonix (ASX:NVX) share price just tanked 10%. What’s going on?
• Why Allkem, Megaport, Redbubble, and Temple & Webster’s shares are falling

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• ASX bank shares are in the red today
• Wall Street bank shares all fell overnight
• Macquarie shares are down 3.62%

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ASX bank shares are all falling today, following in the footsteps of their counterparts on Wall Street.

Macquarie Group Ltd (ASX: MQG) is among the biggest fallers among the major banks, down 3.62% at the time of writing. Meanwhile, the Commonwealth Bank of Australia (ASX: CBA) is currently 1.83% lower. For context, the S&P/ASX 200 Financials Index (ASX: XFJ) is also down 1.56% so far today.

Let’s take a look at what’s happening at Australia’s top banks today.

ASX bank shares falling

Australia’s banks are all in the red at the time of writing. National Australia Bank Ltd (ASX: NAB) has fallen 1.43%, Australia and New Zealand Banking Group Ltd (ASX: ANZ) is down 1.04% and Westpac Banking Corp (ASX: WBC) is 1.24% lower.

Meanwhile, Bendigo and Adelaide Bank Ltd (ASX: BEN) is 2.3% in the red while Bank of Queensland Ltd (ASX: BOQ) is down 1.45%.

The performance of Wall Street bank shares overnight may be weighing on the minds of Australian investors today.

Leading the pack of US banks downwards was The Goldman Sacs Group Inc (NYSE: GS), which fell 6.97%. Reuters reported the investment bank missed its quarterly profit expectations.

The Bank of America Corp (NYSE: BAC) also fell 3.46% overnight while Wells Fargo & Co (NYSE: WFC) dropped 2.36% and Citigroup (NYSE: C) slumped 2.43%.

Meanwhile, the Australian Financial Review reported Chinese President Xi Jinping has pleaded with western countries not to raise interest rates in a speech to the 2022 World Economic Forum.

The US Federal Reserve is considering fast-tracking interest rate rises this year due to inflation concerns. And as the Motley Fool Australia has recently noted, the Reserve Bank of Australia can take their lead from the US.

Any rate movement from the RBA may lead to Australian retail banks also lifting their interest rates and improving profit margins on loans.

The post How are ASX bank shares performing today? appeared first on The Motley Fool Australia.

More reading

• What to expect from Westpac (ASX:WBC) during earnings season
• Is the NAB (ASX:NAB) share price an undervalued smart buy for dividends?
• Will the CBA (ASX:CBA) share price climb another 23% in 2022?
• 2 buy-rated ASX dividend shares
• Here’s what happened to the Bank of Queensland (ASX:BOQ) share price in 2021?

The author has no position in any of the stocks mentioned. Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Redbubble Ltd (ASX: RBL) share price is under pressure again on Wednesday.

In afternoon trade, the ecommerce company’s shares are down almost 9% to a 52-week low of $2.12.

This means the Redbubble share price is now down 30% in the space of two days.

Why is the Redbubble share price sinking?

The weakness in the Redbubble share price this week has been driven by the release of a very disappointing first half trading update on Tuesday.

The heavily shorted company revealed that its first half gross transaction value (GTV) was down 14% over the prior corresponding period to $381 million. Things were even worse for its earnings, with its EBITDA crashing 84% to just $8 million.

Management advised that this was driven by strong competition in the second quarter which impacted organic demand and led to increasing paid acquisition costs.

Unfortunately, a quick fix is not expected, which led to Redbubble downgrading its full year guidance. It now expects its marketplace revenue to be lower year on year and for its EBITDA to marketplace revenue margin to be negative.

Broker response

This update didn’t go down well with brokers and has led to significant downgrades to estimates.

One broker that was particularly disappointed was Morgan Stanley. This morning the broker downgraded Redbubble’s shares to an equal-weight rating and took an axe to its price target. The latter has been cut by a whopping 59% from $6.50 to just $2.65.

Another broker that is more positive is Morgans. Its analysts have retained their add rating but cut their price target by 26% to $3.59. While this still implies decent upside, it hasn’t been enough to convince investors to buy shares today.

The post Redbubble (ASX:RBL) share price sinks again after brokers respond to update appeared first on The Motley Fool Australia.

More reading

• Why Allkem, Megaport, Redbubble, and Temple & Webster’s shares are falling
• Why AVZ, Kogan, Panoramic, and Redbubble shares are sinking
• ASX 200 (ASX:XJO) midday update: Rio Tinto’s Q4 update, JB Hi-Fi rockets, Kogan sinks
• Here’s why the Redbubble (ASX:RBL) share price is crashing 20% today
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in mining exploration company Cannindah Resources Ltd (ASX: CAE) are cruising well ahead of all benchmarks today. At the time of writing, stock in the company is now trading 20% higher at 35.5 cents apiece.

Momentum has been strong this past week for Cannindah, with shares bounding off a low of 21 cents on Monday.

As such Cannindah has eclipsed an 82% gain in the last week of trading, and the ASX hasn’t overlooked the feeding frenzy either.

Compliance officers with the ASX wrote to Cannindah yesterday requesting more information about this trading activity, in search of any potential explanation from the company, to which it replied today. Let’s take a look.

Why’s the Cannindah share price soaring today?

The ASX wrote to Cannindah asking if it were aware of any information that could explain the recent trading in its securities, to which the company replied “no”.

However, when prompted for an explanation in the absence of any such information, Cannindah was a little more forthcoming.

Whilst the company acknowledged that there is no reason “relating to its activities or its financial position that would give rise to the price change”, it did note a presentation made at its AGM from December 2021.

In its AGM, the company noted that assay results from the balance of hole 4 and for holes 5 to 8 from the Mt Cannindah project were due in “early January 2022”.

Hence the company appears to think there is some speculative trading activity surrounding the timing of this announcement, as is often the case in news-sensitive sectors like mining and biotech for example.

Although, Cannindah advised that “results from the remainder of hole 4 through to hole 8 have yet to be received, reported and interpreted”.

Aside from this point, Cannidah also said its shares are tightly held by a large major shareholder, along with “a number of long-term shareholders”, and that trading activity by these players from 14 to 18 January 2022 is “likely to inspire significant price movements”.

Otherwise, there are no other reasons that Cannindah can allude to that pinpoints the recent uptick in price and volume of its shares.

Regarding the assay results from above, the company says it will update the market as soon as the geological reporting is on hand.

Cannindah Resources share price summary

In the last 12 months, the Cannindah share price has soared over 1000% in an impressive display on the chart.

After this most recent rally, shares have climbed another 103% and are up more than 82% in the last 5 days of trading.

The post Cannindah Resources (ASX:CAE) share price rockets 21% after ASX response appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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